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Home My WebLink AboutItem 5: URA - Resolution Acknowledging Receipt of FY07 Report EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Action: Resolution 1046 Acknowledging Receipt of the Annual Financial Report of the Urban Renewal Agency of the City of Eugene, Oregon, for the Fiscal Year Ended June 30, 2007 Meeting Date: January 14, 2008 Agenda Item Number: 5 Department: Central Services Staff Contact: Fionan Cronin www.eugene-or.gov Contact Telephone Number: 682-5394 ISSUE STATEMENT This is a resolution acknowledging receipt of the Annual Financial Report (Report) of the Urban Renewal Agency (Agency) of the City of Eugene for the fiscal year which ended June 30, 2007. This resolution demonstrates compliance with ORS 297.465(2), which requires that a copy of the Agency’s financial report, containing a signed expression of opinion, be furnished to each member of the governing body. BACKGROUND Under Oregon Municipal Audit Law, the Agency is required each fiscal year to contract with an authorized accounting firm for the audit of its accounts and fiscal affairs (ORS 297.425). The regional firm of Isler CPA (auditors) has completed the audit of the Agency’s annual financial report for the fiscal year which ended June 30, 2007 and issued an unqualified opinion on the basic financial statements. The auditors conduct the audit of the Agency’s basic financial statements in accordance with generally accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corporations. Management is responsible for the information contained in, and the preparation of, the Agency’s financial statements. To effectively fulfill this responsibility and to contain the cost of auditor services, City staff devotes significant effort to the closing of accounting records, the preparation of schedules and audit workpapers, and the production of the Annual Financial Report. This also results in staff expertise being developed on specific financial and service issues that can then be used to assist departments and other pertinent parties. The key pages of the Report, which you may wish to review, are page 3 and pages 47-48, where the two auditors' reports are found. In the first report, the auditors have issued a "clean opinion" on the Agency’s basic financial statements, indicating that the Agency has prepared these statements in conformity with generally accepted accounting principles (GAAP). GAAP for state and local governments is promulgated by the Governmental Accounting Standards Board (GASB) to ensure consistency in accounting and comparability in financial reporting among 1 F:\CMO\2008 Council Agendas\M080114\S0801145.doc state and local governments. A clean opinion is a fundamental financial goal for every government, as it represents the highest level of opinion a government can receive from its independent auditors. A clean opinion is an important indicator of sound financial management and credit-worthiness to the citizens, other governmental jurisdictions (state and federal), credit rating agencies, investment bankers, bond holders, and other private sector entities. In the second report, the auditors address the Agency’s compliance with applicable provisions of Oregon Revised Statutes including, requirements related to debt, deposit of public funds, preparation and adoption of the budget, accounting records and related internal control structure, etc. In addition, the auditors also report if the Agency had any significant internal control weaknesses. The auditors noted that the Agency complied with all laws with one exception - the Agency exceeded its legal budget (page 25) in two funds. ? The Agency’s General Fund exceeded its operating budget by $72,443, or 24%. When PDD staff finalized the FY07 budget in February, 2006 for Urban Renewal, they budgeted 53% of operating expenses to the Downtown district and 47% to the Riverfront district. During FY07, however, expenditures for Downtown activity consumed approximately 75% of the total staff expenditures with the majority of the staff effort focused on the West Broadway project in the latter part of the year. As a result, the Agency’s General Fund exceeded its approved budget. The money to pay for this over-expenditure came from within the Agency’s Debt Service Fund. ? The Agency’s Debt Service Fund, which provides funding to the Agency’s General Fund for administrative expenses, exceeded its transfer authority by $72,425, or 6%. This was a result of the over-expenditure in the Agency’s General Fund, as described above. ORS require that all over-expenditures be brought to the attention of the governing body. Because there is no dollar threshold, it is common for local governments to have occasional over-expenditures. As a benchmark for reference, in the past decade the Agency has had no over-expenditures. RELATED POLICY ISSUES Policy B.1 of the City’s Financial Management Goals and Policies states that “The City will maintain an accounting and financial reporting system that allows reporting in conformance with Generally Accepted Accounting Principles and Oregon Local Budget Law and will issue a Comprehensive Annual Financial Report each fiscal year.” This action signifies formal completion of this process for the fiscal year ended June 30, 2007, and demonstrates the Agency’s compliance with the Policy. OPTIONS None. 2 F:\CMO\2008 Council Agendas\M080114\S0801145.doc AGENCY DIRECTOR’S RECOMMENDATION The Agency Director recommends adoption of the Resolution. SUGGESTED MOTION Move to approve Resolution 1046 acknowledging receipt of the Annual Financial Report for the Urban Renewal Agency of the City of Eugene for the fiscal year which ended June 30, 2007. ATTACHMENTS A.Resolution B.Copy of the 2007 Report FOR MORE INFORMATION Staff Contact: Fionan Cronin Telephone: 682-5394 Staff E-Mail: finn.j.cronin@ci.eugene.or.us 3 F:\CMO\2008 Council Agendas\M080114\S0801145.doc ATTACHMENT A RESOLUTION NO. A RESOLUTION ACKNOWLEDGING THE RECEIPT OF THE ANNUAL FINANCIAL REPORT OF THE URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, FOR THE FISCAL YEAR ENDED JUNE 30, 2007 The Urban Renewal Agency of the City of Eugene finds that: The firm of Isler CPA has completed the audit of the financial statements of the Urban Renewal Agency of the City of Eugene for the fiscal year ended June 30, 2007, as required by ORS 297.425 and, pursuant to ORS 297.465, reported to the Board on its findings. NOW, THEREFORE, BE IT RESOLVED by the Urban Renewal Agency of the City of Eugene, as follows: Section 1. That the Board hereby acknowledges that it has received the "Annual Financial Report of the Urban Renewal Agency, a Component Unit of the City of Eugene, for the fiscal year ended June 30, 2007." The foregoing resolution adopted the 14th day of January, 2008. Director URBAN RENEWAL AGENCY A Component Unit of the City of Eugene, Oregon Annual Financial Report Fiscal Year Ended June 30, 2007 URBAN RENEWAL AGENCY A Component Unit of the City of Eugene, Oregon Annual Financial Report Fiscal Year Ended June 30, 2007 (With Independent Auditors’ Report Thereon) Report Prepared by the City of Eugene Financial Services Division URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Annual Financial Report Year Ended June 30, 2007 Table of Contents Exhibit/ SchedulePage(s) Principal Officials 1 Independent Auditors’ Report 3 Management’s Discussion and Analysis 5 - 9 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets 113 Statement of Activities 214 Fund Financial Statements: Balance Sheet - Governmental Funds 315 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 416 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 517 19 - 29 Notes to Basic Financial Statements Required Supplementary Information: Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: General Fund A – 1 33 Riverfront Special Revenue Fund A – 2 34 Other Supplementary Information: Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Debt Service Fund B – 1 37 Riverfront Debt Service Fund B – 2 38 Capital Projects Fund B – 3 39 Riverfront Capital Projects Fund B – 4 40 Schedule of Property Tax Transactions B – 5 41 i URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Annual Financial Report Table of Contents, continued Exhibit/ SchedulePage(s) Audit Comments and Disclosures: Report of Independent Accountants on Internal Control and Other Comments and Disclosures Required by State Regulators 47 - 48 ii URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Eugene City Hall 777 Pearl Street Eugene, Oregon 97401 Principal officials as of June 30, 2007 NameTerm Expires Mayor: Kitty Piercy January 2009 Board Members: Bonny Bettman January 2009 Betty Taylor January 2009 Alan Zelenka January 2011 George Poling January 2011 Mike Clark January 2011 Jennifer Solomon January 2011 Andrea Ortiz January 2009 Chris Pryor January 2009 Administrator: Dennis M. Taylor ï (this page intentionally left blank) î ×ÒÜÛÐÛÒÜÛÒÌ ßËÜ×ÌÑÎÍ ÎÛÐÑÎÌ Ì± ¬¸» Ø±²±®¿¾´» Ó¿§±®ô Ó»³¾»® ±º ¬¸» Ë®¾¿² Î»²»©¿´ ß¹»²½§ Þ±¿®¼ ¿²¼ ¬¸» ß¼³·²·¬®¿¬±® ±º ¬¸» Ë®¾¿² Î»²»©¿´ ß¹»²½§ ±º ¬¸» Ý·¬§ ±º Û«¹»²»ô Ñ®»¹±² º«²¼ ±º ¬¸» Ë®¾¿² Î»²»©¿´ ß¹»²½§ ±º ¬¸» Ý·¬§ ±º Û«¹»²»ô Ñ®»¹±² øß¹»²½§÷ ø¿ ½±³°±²»²¬ «²·¬ ±º ¬¸» Ý·¬§ ±º Û«¹»²»ô Ñ®»¹±²÷ ¿ ±º ¿²¼ º±® ¬¸» §»¿® »²¼»¼ Ö«²» íðô îððéô ©¸·½¸ ½±´´»½¬·ª»´§ ½±³°®·» ¬¸» ß¹»²½§ ó É» ½±²¼«½¬»¼ ±«® ¿«¼·¬ ·² ¿½½±®¼¿²½» ©·¬¸ ¿«¼·¬·²¹ ¬¿²¼¿®¼ ¹»²»®¿´´§ ¿½½»°¬»¼ ·² ¬¸» Ë²·¬»¼ Í¬¿¬» ó ó Ì¸» ³¿²¿¹»³»²¬ ¼·½«·±² ¿²¼ ¿²¿´§· ¿²¼ ¾«¼¹»¬¿®§ ½±³°¿®·±² ·²º±®³¿¬·±² ±² °¿¹» ë ¬¸®±«¹¸ ç ó ó ó ×´»® ÝÐß Þ§æ Û«¹»²»ô Ñ®»¹±² Ü»½»³¾»® ïðô îððé í (this page intentionally left blank) ì Management’s Discussion and Analysis The management of the Urban Renewal Agency (Agency), a component unit of the City of Eugene, Oregon presents this narrative overview and analysis to facilitate both a short and a long-term analysis of the financial activities of the Agency for the fiscal year ended June 30, 2007. This Management’s Discussion and Analysis (MD&A) is based on currently known facts, decisions, and conditions that existed as of the date of the independent auditors’ report. Financial Highlights The net assets of the Agency (assets less liabilities) at June 30, 2007 were $18,606,329. Of this amount, $13,044,734 is unrestricted. At June 30, 2007, the Agency’s governmental funds reported combined ending fund balances of $12,514,732. Of that amount, $10,108,571 is unreserved and available for spending at the Agency’s discretion. The General Fund’s unreserved fund balance is $2,051,882 at the end of the current fiscal year. General Fund expenditures for the current fiscal year were $588,525. Overview of the Financial Statements The following discussion and analysis is intended to serve as an introduction to the Agency’s basic financial statements. The Agency’s basic financial statements are comprised of three components: 1. Government-wide financial statements 2. Fund financial statements 3. Notes to the basic financial statements . Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of the Agency’s finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of the Agency’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Agency is improving or deteriorating. The Statement of Activities presents information showing how the Agency’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Examples of such items include earned, but uncollected, property taxes. The Agency focuses on planning and development activities within the boundaries of the two urban renewal districts in the City of Eugene. Both government-wide financial statements provide information on these activities, which is supported mainly by property taxes. The government-wide financial statements can be found on Exhibits 1 and 2 of this report. ë Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Agency uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Agency are governmental funds. Governmental funds. Governmental funds are used to account for activities where emphasis is placed on available financial resources, rather than upon net income determination. Therefore, unlike the government-wide financial statements, governmental fund financial statements focus on the acquisition and use of current spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations can be found on Exhibits 3 and 5 of this report. The Agency maintains two taxing districts within the urban renewal boundary: the Downtown District and the Riverfront District. The Agency maintains six individual governmental funds to account for these two districts: a general fund, a debt service fund, and a capital projects fund for the Downtown District, and a special revenue fund, a debt service fund, and a capital projects fund for the Riverfront District. Information for each fund is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. The basic governmental fund financial statements can be found on Exhibits 3 and 4 of this report. Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. They are an integral part of the financial statements and should be read in conjunction with them. Required supplementary information. The Agency adopts an annual appropriated budget for all its funds. To demonstrate compliance with the budget, budgetary comparison statements have been provided for the general fund and the Riverfront special revenue fund as required supplementary information. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the Agency, assets exceeded liabilities by $18,606,329 at the close of the most recent fiscal year. A portion of the Agency’s net assets (29.9%) reflects its investment in capital assets (land, construction in progress, buildings and building improvements, improvements other than buildings, and infrastructure). The Agency uses these capital assets to plan and develop designated properties within the urban renewal boundary. Consequently, these assets are not available for future spending. The remaining balance of net assets ($13,044,734) is unrestricted, and may be used to meet the government’s ongoing obligations within the urban renewal boundary. ê Urban Renewal Agency's Net Assets 20072006 Current and other assets$13,085,80011,670,939 Capital assets5,561,5955,511,231 Total assets 18,647,39517,182,170 Other liabilities41,06629,717 Total liabilities41,06629,717 Net assets: Invested in capital assets, net of related debt5,561,5955,511,231 Unrestricted13,044,73411,641,222 Total net assets$18,606,32917,152,453 Urban Renewal Agency's Change in Net Assets 20072006 Revenues: Program revenues: Fines, fees, and charges for services$244,68088,583 Capital grants and contributions137,9660 General revenues: Taxes4,253,4654,221,523 Investment earnings545,793371,498 Total revenues5,181,9044,681,604 Expenses: Urban renewal redevelopment3,728,0284,240,893 Total expenses3,728,0284,240,893 Increase (decrease) in net assets 1,453,876440,711 Net assets, July 117,152,45316,711,742 Net assets, June 30$18,606,32917,152,453 The Agency’s net assets increased by $1.5 million compared to $0.4 million in the prior year. The key factors for the larger increase in FY07 were an increase of $0.2 million in fines, fees, and charges for services, and a $0.2 million increase in investment earnings, combined with a decrease of $0.5 million in development expenditures. é Urban Renewal Agency Revenues by Source Taxes - 82.1% Capital grants and contributions - 2.7% Fines, fees, and charges for services - 4.7% Investment earnings - 10.5% Fund-based Financial Analysis As previously discussed, the Agency uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The focus of the Agency’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Agency’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Agency’s governmental funds reported combined ending fund balances of $12,514,732. Approximately 81% of this total amount ($10,108,571) constitutes unreserved fund balance, which is available for spending at the Agency’s discretion. The remainder of fund balance ($2,406,161) is reserved to indicate that it is not available for new spending because it has already been committed for assets held for resale. The General Fund is the chief operating fund of the Agency. At the end of the current fiscal year, the total fund balance was $2,590,811, of which $2,051,882 is unreserved. As a measure of the General Fund’s liquidity, it may be useful to compare total fund balance to total fund expenditures. Unreserved fund balance is 3.5 times larger than total General Fund expenditures. General Fund Budgetary Highlights The difference between the original budget and the final amended budget was an increase of $140,757. This increase was funded by unspent resources from the prior year. Capital Assets . The Agency’s investment in capital assets for its governmental activities as of June 30, 2007 Capital assets amounted to $5,561,595 (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, buildings and building improvements, improvements other than buildings, and infrastructure. è Urban Renewal Agency's Capital Assets, Net of Accumulated Depreciation 20072006 Land$1,908,0261,908,026 Construction in progress1,008,296881,474 Improvements other than buildings1,676,9641,671,376 Infrastructure968,3091,050,355 Total capital assets$ 5,561,5955,511,231 Additional information on the Agency’s capital assets can be found in note (4)(C) of this report. Next Year’s Budgets and Rates For FY08, the following factors were taken into account when developing the urban renewal budgets: Property taxes are predicted to increase slightly in FY08 due to small increases in assessed value within the districts. The property tax collection rate is estimated to be 96% in FY08. The FY07 actual was approximately 97% for both current and delinquent taxes. There are no new projects planned for FY08. Requests for Information This financial report is designed to provide a general overview of the Agency’s finances for all those with an interest in the Agency. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to: Fionan Cronin, CPA Financial Reporting Manager City of Eugene th 100 West 10 Avenue, Suite 400 Eugene, Oregon 97401 ç (this page intentionally left blank) ïð BASIC FINANCIAL STATEMENTS ïï (this page intentionally left blank) ïî Urban Renewal Agency of the City of Eugene, OregonExhibit 1 Statement of Net Assets June 30, 2007 (amounts in dollars) Assets Equity in pooled cash and investments10,119,041 Receivables (net of allowance)537,703 Due from other governments22,895 Other assets2,406,161 Capital assets: Land and construction in progress2,916,322 Other capital assets (net of accumulated depreciation)2,645,273 Total assets18,647,395 Liabilities Accounts payable and other liabilities38,958 Unearned revenue2,108 Total liabilities41,066 Net assets Invested in capital assets5,561,595 Unrestricted13,044,734 Total net assets18,606,329 The accompanying notes are an integral part of the financial statements. ïí Urban Renewal Agency of the City of Eugene, OregonExhibit 2 Statement of Activities For the fiscal year ended June 30, 2007 (amounts in dollars) Net Expense and Changes Program Revenuesin Net Assets Fees, Fines, andOperatingCapital Charges forGrants andGrants and ExpensesServicesContributionsContributionsTotal Functions/Programs Governmental activities: Urban renewal redevelopment3,728,028244,6800137,966(3,345,382) Interestonlongtermdebt00000 Total governmental activities3,728,028244,6800137,966(3,345,382) General revenues: Property taxes4,253,465 Unrestricted investment earnings545,793 Total general revenues4,799,258 Change in net assets1,453,876 Net assets, July 1, 200617,152,453 Net assets, June 30, 200718,606,329 The accompanying notes are an integral part of the financial statements. ïì Urban Renewal Agency of the City of Eugene, OregonExhibit 3 Balance Sheet Governmental Funds June 30, 2007 (amounts in dollars) RiverfrontRiverfrontRiverfrontTotal DebtCapitalSpecialDebtCapitalGovernmental GeneralServiceProjectsRevenueServiceProjectsFunds Assets Equity in pooled cash and investments2,050,8826,849,407467,511528,859154,00768,37510,119,041 Receivables: Interest041,90907,4920049,401 Taxes0190,075029,36700219,442 Loans and notes278,42900000278,429 Due from other governments019,92902,9660022,895 Assets held for resale538,92900001,867,2322,406,161 Total assets2,868,2407,101,320467,511568,684154,0071,935,60713,095,369 Liabilities and Fund Balances Liabilities Accounts payable6,699030,4811,7770038,957 Deferred revenue270,730231,983038,96700541,680 Total liabilities277,429231,98330,48140,74400580,637 Fund balances Reserved for assets held for resale538,92900001,867,2322,406,161 Unreserved2,051,8826,869,337437,030527,940154,00768,37510,108,571 Total fund balances2,590,8116,869,337437,030527,940154,0071,935,60712,514,732 Total liabilities and fund balances2,868,2407,101,320467,511568,684154,0071,935,607 Reconciliation to the Statement of Net Assets: The Statement of Net Assets reports receivables at their net realizable value. However, receivables not available to pay for current-period expenditures are deferred in governmental funds.530,002 Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Assets at their net depreciable value. 5,561,595 Total net assets18,606,329 The accompanying notes are an integral part of the financial statements. ïë Urban Renewal Agency of the City of Eugene, OregonExhibit 4 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the fiscal year ended June 30, 2007 (amounts in dollars) RiverfrontRiverfrontRiverfrontTotal DebtCapital SpecialDebtCapitalGovernmental GeneralServiceProjectsRevenueServiceProjectsFunds Revenues Taxes03,679,5660588,902004,268,468 Rental income00025,2980025,298 Charges for services2,460000002,460 Repayment of revolving loans37,1630000037,163 Miscellaneous, primarily interest119,606371,43918,43521,69810,2154,400545,793 Total revenues159,2294,051,00518,435635,89810,2154,4004,879,182 Expenditures Current - departmental: Administration588,52500134,44100722,966 Debt service: Bond issuance costs00007,23307,233 Capital outlay00442,342001,342443,684 Intergovernmental02,441,542025,000002,466,542 Total expenditures588,5252,441,542442,342159,4417,2331,3423,640,425 Excess (deficiency) of revenues over expenditures(429,296)1,609,463(423,907)476,4572,9823,0581,238,757 Other financing sources (uses) Transfers in372,2570860,9370001,233,194 Transfers out0(1,233,194)0000(1,233,194) Total other financing sources (uses)372,257(1,233,194)860,9370000 Net change in fund balances(57,039)376,269437,030476,4572,9823,0581,238,757 Fund balances, July 1, 20062,647,8506,493,068051,483151,0251,932,54911,275,975 Fund balances, June 30, 20072,590,8116,869,337437,030527,940154,0071,935,60712,514,732 The accompanying notes are an integral part of the financial statements. ïê Urban Renewal Agency of the City of Eugene, OregonExhibit 5 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the fiscal year ended June 30, 2007 (amounts in dollars) Net change in fund balances - total governmental funds1,238,757 Amounts reported for governmental activities in the Statement of Activities are different because: Donations of capital assets are reported as capital contributions in the Statement of Activities, but do not appear in the governmental funds because they are not financial resources. 137,966 Capital outlays are reported as expenditures in governmental funds. However, the Statement of Activities allocates the cost of capital outlays over their estimated useful lives as depreciation expense.(87,604) Governmental funds defer revenues that do not provide current financial resources. However, the Statement of Activities recognizes such revenues at their net realizable value when earned, regardless of when received.164,757 Change in net assets of governmental activities.1,453,876 The accompanying notes are an integral part of the financial statements. ïé (this page intentionally left blank) ïè URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements June 30, 2007 (1)Summary of Significant Accounting Policies The financial statements of the Urban Renewal Agency (Agency) of the City of Eugene, Oregon (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard- setting body for establishing governmental accounting and financial reporting standards. The more significant of the Agency's accounting policies are described below. (A)The Financial Reporting Entity The Agency's governing body is identical to the Eugene City Council, and because the services of the Agency are exclusively for the benefit of the City, the Agency has been determined under standards established by Governmental Accounting Standards Board Statement No. 14 to be a component unit of the City. As a result, the funds of the Agency are blended with those of the City by including them in the appropriate statements and schedules of the City's Comprehensive Annual Financial Report, copies of which can be obtained from the Financial Services Division of the City. (B)Organization and Operation The Urban Renewal Agency of the City of Eugene was established on July 10, 1967 as a separate political body charged with the responsibility to implement the Central Eugene Project and Urban Renewal Plan. On May 24, 1982, the powers granted to the Agency under Oregon Revised Statutes Chapter 457 were transferred to the City Council of Eugene. The accounts of the Agency are organized on the basis of funds. Fund accounting is designed to demonstrate legal compliance and aid financial management by segregating government functions and activities. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which comprise its assets, liabilities, fund balances, revenues, and expenditures. (C)Government-wide and Fund Financial Statements The government-wide financial statements (Exhibits 1 and 2) report information on all activities of the Agency. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. The Statement of Activities (Exhibit 2) demonstrates the degree to which the expenses of a given function are offset by program revenues. Program revenues include 1) fines, fees, and charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or program and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or program. Grants and contributions not restricted are reported as general revenues rather than program revenues. Taxes and other items not properly included among program revenues are also reported as general revenues. Fund financial statements (Exhibits 3 and 4) are provided for all governmental funds. continued ïç URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (1)Summary of Significant Accounting Policies, continued (D)Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus refers to what is measured by a fund. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. The government-wide financial statements are accounted for using an economic resources measurement focus, whereby all assets and liabilities are included in the Statement of Net Assets, and the Statement of Activities present increases and decreases in those net assets. The accrual basis of accounting is used whereby revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. The governmental fund financial statements are accounted for using a current financial resources measurement focus, whereby only current assets and current liabilities generally are included in the Balance Sheet, and the Statement of Revenues, Expenditures, and Changes in Fund Balances present increases and decreases in those net current assets. These funds use the modified accrual basis of accounting whereby revenues are recorded when susceptible to accrual (both measurable and available). "Measurable" means that the amount of the transaction can be determined. "Available" is defined as being collectible within the current period or soon enough thereafter (60 days) to be used to liquidate liabilities of the current period.Expenditures, other than interest on long-term obligations, are recorded when the fund liability is incurred. Real and personal property taxes were levied as of July 1 for the fiscal year on values assessed as of January 1. Property taxes are an enforceable lien on both real and personal property as of July 1 and are due and payable in three installments on November 15, February 15, and May 15. All property taxes are billed and collected by Lane County and remitted to the Agency. In the governmental fund financial statements, property taxes are reflected as revenues in the fiscal period for which they were levied, provided they are due, or past due and receivable within the current period, and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period (60 days). Otherwise, they are reported as deferred revenues. In the government-wide financial statements, property tax revenues are fully recognized at the time of levy. Property taxes which are held at year-end by the collecting agency, Lane County, and are remitted to the City within the 60-day period are reported as "Due from other governments." Repayment of revolving loans and miscellaneous revenues (except investment earnings) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. Rental income is typically received in advance and is deferred when appropriate. Governmental Funds Governmental funds finance all of the functions of the Agency. The measurement focus is upon determination of changes in current financial resources, rather than upon net income determination. The following are the Agency's Downtown District governmental funds: General Fund The General Fund is the general operating fund of the Agency. It is used to account for all financial resources except those required to be accounted for in another fund. Principal sources of revenue are rental income, interest on investments, principal and interest payments on outstanding loans, and transfers from the Debt Service Fund. Primary expenditures of the General Fund are made for downtown development and administration costs. continued îð URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (1)Summary of Significant Accounting Policies, continued (D)Measurement Focus, Basis of Accounting, and Financial Statement Presentation, continued Debt Service Fund The Debt Service Fund is used to account for the accumulation of tax increment resources and the payment of intergovernmental expenditures to the City for payment of principal and interest on the Library Certificates of Participation. Capital Projects Fund The Capital Projects Fund is used to account for the financial resources to be used for the acquisition or construction of major capital facilities within the Downtown District. The following are the Agency's Riverfront District governmental funds: Riverfront Special Revenue Fund The Riverfront Special Revenue Fund is used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for the Riverfront District. Riverfront Debt Service Fund The Riverfront Debt Service fund is used to account for the proceeds of debt issued to pay for the construction of a new parking structure. This project was cancelled and the fund will close in FY08. Riverfront Capital Projects Fund The Riverfront Capital Projects Fund is used to account for the financial resources to be used for the acquisition or construction of major capital facilities within the Riverfront District. When both restricted and unrestricted resources are available for use, it is the Agency’s practice to use restricted resources first, then unrestricted resources as they are needed. (E)Equity in Pooled Cash and Investments The Agency invests cash through the City into various investment programs. Policies adopted by the Investment Advisory Board and the Eugene City Council authorize the City to invest in obligations of the U.S. Treasury and its agencies, time certificates of deposit, bankers’ acceptances, municipal bonds, corporate bonds, commercial paper, repurchase agreements, reverse repurchase agreements, and the Oregon Local Government Investment Pool (LGIP). It is the City’s policy to report at amortized cost all short-term, highly-liquid money market investments (including corporate bonds, commercial paper, bankers’ acceptances, municipal bonds, and U.S. Treasury and agency obligations) and participating interest-earning investment contracts with a remaining maturity at time of purchase of one year or less. Such investments are stated at cost, increased by accretion of discounts and reduced by amortization of premiums, both computed by the straight-line method. Callable investments purchased at a discount are amortized to the maturity date, and callable investments purchased at a premium are amortized to the first call date. Investments with a remaining maturity at time of purchase of more than one year are valued at fair value. continued îï URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (1)Summary of Significant Accounting Policies, continued (E)Equity in Pooled Cash and Investments, continued The City maintains a common cash and investments pool for all City funds, including funds of the Agency. Interest earned on the pooled cash and investments is allocated quarterly based on each fund’s average cash and investments balance as a proportion of the City’s total pooled cash and investments. The City considers “cash” to include the pooled cash and investments, since the pool has the general characteristics of a demand deposit account, in that any participating fund may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. (F)Receivables All receivables are shown net of an allowance for uncollectibles in the Statement of Net Assets. (G)Capital Assets Capital assets include land, construction in progress, buildings, improvements, and infrastructure costing over $5,000 used in operations that have initial useful lives extending beyond a single reporting period. Infrastructure assets in the Agency include streets and street improvements. All capital assets, except for infrastructure prior to July 1, 1980 have been capitalized in the government- wide financial statements. In accordance with the current financial resources measurement focus, capital assets are not capitalized in the governmental fund financial statements. All purchased capital assets are valued at historical cost. Historical cost is measured by the cash or cash equivalent price of obtaining an asset, including ancillary charges necessary to place the asset into its intended location and condition for use. Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Amounts expended for maintenance and repairs are charged to expenditures in the appropriate funds as incurred and are not capitalized. Capital assets are depreciated unless they are inexhaustible in nature (e.g., land). Depreciation is an accounting process used to allocate the cost of capital assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the capital asset. Depreciation is not intended to represent an estimate in the decline of fair market value, nor are capital assets net of accumulated depreciation intended to represent an estimate of the current condition of the assets, or the maintenance requirements needed to maintain the assets at their current level of condition. Depreciation is computed over the estimated useful lives of the capital assets. All estimates of useful lives are based on actual experience by City departments with identical or similar capital assets. Depreciation is calculated on the straight-line basis, except for infrastructure and improvements other than buildings, which are calculated using a composite depreciation method. The estimated useful lives of the various categories of assets are as follows: Estimated useful life Category Buildings 40 years Improvements other than buildings 20 years Infrastructure 25 years Upon disposal of capital assets, cost and accumulated depreciation are removed from the accounts and, if appropriate, a gain or loss on the disposal is recognized. In accordance with the composite depreciation method, no gain or loss is recorded upon disposal, but rather, cost is removed from the capital asset account and charged to the accumulated depreciation account. continued îî URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (1)Summary of Significant Accounting Policies, continued (G)Capital Assets, continued Capital assets are reported net of accumulated depreciation in the Statement of Net Assets, and depreciation expense is reported in the Statement of Activities in the urban renewal redevelopment function. (H) Fund Balances In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for specific purposes. (I) Indirect Expenses The Agency’s Statement of Revenues, Expenditures, and Changes in Fund Balances include reimbursement to the City’s Central Services department for general services provided to the Agency by the City’s General Fund. The charge for general service costs is based on an approved overhead rate applied to direct costs. The indirect cost reimbursement has been included in program expenses in the Statement of Activities. (2) Reconciliation of Government-wide and Fund Financial Statements (A) Explanation of Certain Differences Between the Government-wide Statement of Net Assets and the Governmental Fund Balance Sheet The Balance Sheet for governmental funds (Exhibit 3) includes a reconciliation between total fund balances and total net assets in the Statement of Net Assets (Exhibit 1). The following are selected elements of that reconciliation. Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Assets at their net depreciable value. The details of this $5,561,595 difference are as follows: Capital assets (net of accumulated depreciation) reported in the Statement of Net Assets: Land and construction in progress$2,916,322 Other capital assets (net of accumulated depreciation)2,645,273 Net adjustment$5,561,595 The Statement of Net Assets reports receivables at their net realizable value. However, receivables not available to pay for current-period expenditures are deferred in governmental funds. The details of this $530,002 difference are as follows: Receivables: Interest$49,401 Taxes219,442 Loans and notes270,729 Subtotal539,572 Allowance for uncollectibles(9,570) Net adjustment$530,002 continued îí URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (2) Reconciliation of Government-wide and Fund Financial Statements, continued (B) Explanation of Certain Differences Between the Government-wide Statement of Activities and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances The Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities is provided at Exhibit 5. The following are selected elements of that reconciliation: Donations of capital assets are reported as capital contributions in the Statement of Activities, but do not appear in the governmental funds because they are not financial resources. The $137,966 difference represents current year capital assets donations. Capital outlays are reported as expenditures in governmental funds. However, the Statement of Activities allocates the cost of capital outlays over their estimated useful lives as depreciation expense. The details of this $87,604 difference are as follows: Capital outlay$139,854 Depreciation expense(227,458) Net adjustment $(87,604) Governmental funds defer revenues that do not provide current financial resources. However, the Statement of Activities recognizes such revenue at their net realizable value when earned, regardless of when collected. The details of this $164,757 difference are as follows: Change in deferred revenue from the following sources: Property taxes receivable$(13,869) Notes receivable179,087 Subtotal165,218 Change in the allowance for doubtful receivables(461) Net adjustment$164,757 (3) Stewardship, Compliance, and Accountability (A) Budgetary Information The City of Eugene submits to the City Council of Eugene (acting as the Urban Renewal Agency Board under provisions of Oregon Revised Statute 457.460) a proposed operating and capital budget a sufficient length of time in advance to allow adoption of the budget prior to July 1. The Agency legally adopts its budget annually for all funds prior to July 1 through passage of a resolution. The resolution authorizes fund appropriations as current annual departmental requirements, debt service, capital outlay, interfund transfers, interfund loans, intergovernmental, and miscellaneous fiscal transactions. Expenditures cannot legally exceed appropriations at these control levels. Appropriations which have not been spent at year-end lapse, although an amending resolution passed in the subsequent year specifically provides for the reappropriation of prior-year lapsed encumbrances. continued îì URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (3) Stewardship, Compliance, and Accountability, continued (A) Budgetary Information, continued Unexpected additional resources, or appropriations may be added to the budget through the use of a supplemental budget. A supplemental budget requires hearings before the public, publications in newspapers and approval by the Agency. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Such transfers require approval by passing an Agency resolution authorizing the transfer. All budget amendments are subject to the limitations put forth in the Oregon Revised Statutes Chapters 294.305 through 294.565 (Oregon Budget Law). The net effect of amending resolutions passed during the fiscal year was an appropriation increase of $4,816,843. (B) Overexpenditures of Appropriations For the year ended June 30, 2007, the General Fund and Debt Service Fund had budget-basis expenditures in excess of legal appropriations of $72,443 and $72,425, respectively. (4) Detailed Notes on All Funds (A)Equity in Pooled Cash and Investments The City maintains a common cash and investments pool that is available for use by all funds including the Agency. The Agency’s portion of this pool is displayed in the Statement of Net Assets and the Balance Sheet as "Equity in pooled cash and investments.” Cash and investments are comprised of the following at June 30, 2007: Deposits with banks $960,280 Investments9,158,761 $10,119,041 Deposits At June 30, 2007, the Agency’s proportionate share of deposits with various financial institutions have a bank value of $1,147,041. For deposits in excess of federal depository insurance, Oregon Revised Statutes require the depository institution to maintain on deposit with a custodian, in a collateral pool, securities having a value not less than 25% of the outstanding certificates of participation which are issued by the collateral pool manager. The certificates of participation are issued in the City’s name and are held by the City. Custodial Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. At June 30, 2007, the Agency has deposits of $734,664 insured by federal depository insurance and $247,099 which is collateralized by a minimum of 25% of the certificates of participation (per Oregon Revised Statutes). The remaining $165,278 is uncollateralized. continued îë URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (A)Equity in Pooled Cash and Investments, continued Investments As of June 30, 2007, the Agency’s proportionate share of the City’s investments and maturities were as follows: Weighted average % of investment Investment typeCarrying valuematurity (years)**portfolio Corporate securities$2,225,6450.42824.2% LGIP372,2570.0034.1% Municipal bonds 481,3670.4805.3% U.S. agency securities5,857,1980.70064.0% U.S. treasury securities222,2942.1612.4% Total $9,158,7610.630100.0% **The “weighted average maturity in years” calculation assumes that all investments are held until maturity. Interest Rate Risk As a means of limiting its exposure to losses arising from rising interest rates, the City’s investment policy limits investment as follows: Maximum % Maximum length to Investment typeof portfoliomaturity Bankers’ acceptances 50%6 months Corporate securities 35%18 months Local government investment pool 100%1 day State and local government obligations 50%2 years U.S. agency securities 100%2 years U.S. treasury securities 100%3 years With the exception of pass-through funds, the maximum amount of pooled investments to be placed in the Local Government Investment Pool is limited by Oregon Statute to $39,836,066, which will increase proportionately to the Portland Consumer Price Index. The limit can be temporarily exceeded for ten business days and does not apply either to pass-through funds or to funds invested on behalf of another governmental unit. Credit Risk The City’s policy, which adheres to State of Oregon law, is to limit its Corporate and Municipal investments to the following: Issuers within Oregon must be rated “A” (bonds) or A-2 / P-2 (commercial paper) or better by Standard and Poor’s, Moody’s Investors Service or any other nationally recognized statistical rating organization. Issuers not in Oregon must be rated AA / Aa (bonds) or A-1 / P-1 (commercial paper) or better. continued îê URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (A)Equity in Pooled Cash and Investments, continued Investments, continued At June 30, 2007, the Agency’s proportionate share of the City’s investments were rated as follows: HighestRatingFrom Investment typeMoody's Investors Service or Standard & Poor's Corporation TotalAaa/AAAAa/AAA/AP-1/A-1Not rated Corporate securities $2,225,645276,1721,478,330362,810108,3330 Local government investment pool 372,2570000372,257 Municipal bonds 481,367481,3670000 U.S. agency securities 5,857,1985,587,1980000 U.S. treasury securities 222,294222,2940000 Total$9,158,7616,837,0311,478,330362,810108,333372,257 The Oregon State Treasurer maintains the Oregon Short Term Fund (OSTF), of which the Local Government Investment Pool (LGIP) is a part. Participation by local governments is voluntary. The State of Oregon investment policies are governed by statute and the Oregon Investment Council. In accordance with Oregon Statutes, funds are invested as a prudent investor would do, exercising reasonable care, skill and caution. LGIP was created to offer a short-term investment alternative to Oregon local governments. The investments are regulated by the OSTF and approved by the Oregon Investment Council (ORS 294.805 to 294.895). At June 30, 2007, the fair value of the City’s deposits with the LGIP approximates cost. The OSTF financial statements are available at http://ost.state.or.us. The LGIP’s portfolio concentration of credit risk at June 30, 2007 included: Commercial Paper (31.0%), Corporate Bonds (17.9%), Certificates of Deposits (1.2%), U.S. Agency securities (49.0%), and Bank Notes (0.9%). The credit risk associated with the investments was: AAA rating (50.8%), AA rating (11.6%), A rating (34.2%), and not rated (3.4%). Concentration of Credit Risk The City’s policy for investing in individual issuers varies depending on the type of investments. Agency securities are restricted to no more than 25% for any one issuer. No more than 25% of the total portfolio of investments may be invested in a single issuer of bankers’ acceptances. Investments in commercial paper or corporate bonds of any one issuer may not exceed 5% of the investment portfolio. At June 30, 2007, more than 5% of the Agency’s proportionate share of the portfolio is invested in Federal National Mortgage Association (17.5%), Federal Home Loan Mortgage Corporation (15.5%), Federal Home Loan Bank (14.6%), and Federal Farm Credit Bank (12.6%) securities. continued îé URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (B) Deferred Revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period, and resources that have been received but not yet earned. At June 30, 2007, the deferred revenue reported in the Balance Sheet for governmental funds consist of the following: Total Property taxes receivable: Debt Service$190,075 Riverfront Special Revenue29,367 Notes receivable: General270,730 Other: Debt Service41,908 Riverfront Special Revenue9,600 Total deferred revenue$541,680 (C) Capital Assets Capital assets activity for the year ended June 30, 2007 was as follows: BeginningEnding balanceIncreasesDecreasesbalance Governmental activities: Capital assets, not being depreciated Land$1,908,026001,908,026 Construction in progress881,474416,818(289,996)1,008,296 Total capital assets, not being depreciated2,789,500416,818(289,996)2,916,322 Capital assets, being depreciated Improvements other than buildings3,280,179151,00003,431,179 Infrastructure2,051,139002,051,139 Total capital assets being depreciated5,331,318151,00005,482,318 Less accumulated depreciation for: Improvements other than buildings(1,608,803)(145,412)0(1,754,215) Infrastructure(1,000,784)(82,046)0(1,082,830) Total accumulated depreciation(2,609,587)(227,458)0(2,837,045) Total capital assets, being depreciated, net2,721,731(76,458)02,645,273 Governmental activities capital assets, net$5,511,231340,360(289,996)5,561,595 îè URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (5) Other Information (A) Risk Management The Agency is a participant in the City’s Risk and Benefits Internal Service Fund which accounts for and finances its risks of loss. The Risk and Benefits Fund has a self-insured liability program which covers personal injury, public official errors and omissions, automobile, and employer’s liability, with a maximum self-insured retention of $500,000 per occurrence. In addition, the Risk and Benefits Fund has a self- insured workers’ compensation program which covers employees’ work related illnesses and injuries, including employer’s liability, with a maximum self-insured retention of $500,000 per occurrence. The Agency, as a participant in the Risk and Benefits Fund, retains a portion of the risk of loss for general liability. Coverage for workers’ compensation, general liability, and employees’ medical claims in excess of the self-insurance retention limit is purchased from commercial insurers. The Risk and Benefits Fund also purchases all risk property insurance coverage from a commercial insurer. The property insurance policy has a basic $25,000 deductible, however, earthquake and flood insurance coverage were subject to $250,000 deductible per occurrence. During the previous three fiscal years, there were two general liability claims that exceeded the insurance coverage levels. (B) Commitments Pursuant to an intergovernmental agreement between the City and the Agency, the Agency’s tax increment revenues are to be used to provide funding resources to the City to cover debt service associated with the certificates of participation (COPs) issued by the City to finance the construction of a library. If the Agency’s revenues exceed the debt service requirements, such excess may be disbursed to the City to pay other obligations incurred for the library project. During the fiscal year, $2,441,542 in payments were made to the City to cover debt service. The payments are reported as intergovernmental expenditures in the Agency’s Debt Service Fund. Annual debt service requirements to maturity for the City’s Library COPs are as follows: Year ending June 30PrincipalInterest 2008$2,100,000280,000 20092,200,000172,500 20102,350,000 58,750 Total$6,650,000511,250 (C) Outstanding Encumbrances Encumbrances outstanding at June 30, 2007 which the Agency intends to honor are $39,944 and $56 in the Capital Projects and Riverfront Capital Projects Funds, respectively. îç (this page intentionally left blank) íð REQUIRED SUPPLEMENTARY INFORMATION íï (this page intentionally left blank) íî -1 A Urban Renewal Agency of the City of Eugene, Oregon General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2007 (amounts in dollars) BudgetActual BudgetGAAP OriginalFinalbasisAdjustmentbasis Revenues Charges for services5005002,46002,460 Repayment of revolving loans00037,16337,163 Miscellaneous105,000105,000120,857(1,251)119,606 Total revenues105,500105,500123,31735,912159,229 Expenditures Administration299,832299,832372,275216,250588,525 Loans granted2,073,6642,214,421216,250(216,250)0 Total expenditures2,373,4962,514,253588,5250588,525 Excess (deficiency) of revenues over expenditures(2,267,996)(2,408,753)(465,208)35,912(429,296) Other financing sources (uses) Principal payments received50,00050,00037,163(37,163)0 Transfers in299,832299,832372,2570372,257 Total other financing sources (uses)349,832349,832409,420(37,163)372,257 Net change in fund balance(1,918,164)(2,058,921)(55,788)(1,251)(57,039) Fund balance, July 1, 20061,968,1642,108,9212,108,921538,9292,647,850 Fund balance, June 30, 200750,00050,0002,053,133537,6782,590,811 íí -2 A Urban Renewal Agency of the City of Eugene, Oregon Riverfront Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2007 (amounts in dollars) BudgetActual BudgetGAAP OriginalFinalbasisAdjustmentbasis Revenues Taxes575,000575,000588,9020588,902 Rental income25,00025,00025,298025,298 Miscellaneous25,00025,00022,101(403)21,698 Total revenues625,000625,000636,301(403)635,898 Expenditures Administration261,316261,316134,4410134,441 Intergovernmental12,50025,00025,000025,000 Total expenditures273,816286,316159,4410159,441 Excess (deficiency) of revenues over expenditures351,184338,684476,860(403)476,457 Other financing sources (uses) Transfers out(320,000)(320,000)000 Total other financing sources (uses)(320,000)(320,000)000 Net change in fund balance31,18418,684476,860(403)476,457 Fund balance, July 1, 200632,58951,48351,483051,483 Fund balance, June 30, 200763,77370,167528,343(403)527,940 íì OTHER SUPPLEMENTARY INFORMATION íë (this page intentionally left blank) íê B-1 Urban Renewal Agency of the City of Eugene, Oregon Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2007 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Taxes3,680,0003,679,56603,679,566 Miscellaneous240,000376,023(4,584)371,439 Total revenues3,920,0004,055,589(4,584)4,051,005 Expenditures Intergovernmental2,441,5652,441,54202,441,542 Total expenditures2,441,5652,441,54202,441,542 Excess (deficiency) of revenues over expenditures1,478,4351,614,047(4,584)1,609,463 Other financing sources (uses) Transfers out(1,160,769)(1,233,194)0(1,233,194) Total other financing sources (uses)(1,160,769)(1,233,194)0(1,233,194) Net change in fund balance317,666380,853(4,584)376,269 Fund balance, July 1, 20066,493,0686,493,06806,493,068 Fund balance, June 30, 20076,810,7346,873,921(4,584)6,869,337 íé B-2 Urban Renewal Agency of the City of Eugene, Oregon Riverfront Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2007 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Miscellaneous010,312(97)10,215 Total revenues010,312(97)10,215 Expenditures Debt service71,0257,23307,233 Intergovernmental4,000,000000 Total expenditures4,071,0257,23307,233 Excess (deficiency) of revenues over expenditures(4,071,025)3,079(97)2,982 Other financing sources (uses) Proceeds of debt issuance4,000,000000 Transfers in320,000000 Total other financing sources (uses)4,320,000000 Net change in fund balance248,9753,079(97)2,982 Fund balance, July 1, 2006151,025151,0250151,025 Fund balance, June 30, 2007400,000154,104(97)154,007 íè B-3 Urban Renewal Agency of the City of Eugene, Oregon Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2007 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Miscellaneous018,757(322)18,435 Total revenues018,757(322)18,435 Expenditures Capital outlay860,937442,3420442,342 Total expenditures860,937442,3420442,342 Excess (deficiency) of revenues over expenditures(860,937)(423,585)(322)(423,907) Other financing sources (uses) Transfers in860,937860,9370860,937 Total other financing sources (uses)860,937860,9370860,937 Net change in fund balance0437,352(322)437,030 Fund balance, July 1, 20060000 Fund balance, June 30, 20070437,352(322)437,030 íç B-4 Urban Renewal Agency of the City of Eugene, Oregon Riverfront Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual For the fiscal year ended June 30, 2007 (amounts in dollars) Actual BudgetGAAP BudgetbasisAdjustmentbasis Revenues Miscellaneous20,0004,443(43)4,400 Total revenues20,0004,443(43)4,400 Expenditures Capital outlay83,2361,34201,342 Total expenditures83,2361,34201,342 Excess (deficiency) of revenues over expenditures(63,236)3,101(43)3,058 Total other financing sources (uses)0000 Net change in fund balance(63,236)3,101(43)3,058 Fund balance, July 1, 200665,31765,3171,867,2321,932,549 Fund balance, June 30, 20072,08168,4181,867,1891,935,607 ìð Urban Renewal Agency of the City of Eugene, Oregon B-5 Schedule of Property Tax Transactions For the fiscal year ended June 30, 2007 (amounts in dollars) Uncollected Adjustments, Uncollected balancesCurrentinterest, and balances Fiscal yearJuly 1, 2006year's levydiscountsCollectionsJune 30, 2007 1965-0137,8890(5,740)(861)31,288 20025,6330(195)(681)4,757 200312,9890(593)(6,281)6,115 200424,50601,291(16,101)9,696 200547,65301,462(24,282)24,833 200699,9790(3,475)(56,163)40,341 200704,386,188(122,443)(4,161,333)102,412 Totals228,6494,386,188(129,693)(4,265,702)219,442 Summary by fund type Special Revenue Fund(588,224)29,367 Debt Service Fund(3,677,478)190,075 Totals(4,265,702)219,442 ìï (this page intentionally left blank) ìî AUDIT COMMENTS ìí (this page intentionally left blank) ìì AUDIT COMMENTS (Comments and Disclosures Required by State Regulators) _________ Oregon Administrative Rules 162-010-050 through 162-010-320, of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in audit reports. The required financial statements and schedules are set forth in preceding sections of this report. Required comments and disclosures related to the audit of such statements and schedules are set forth following. ìë (this page intentionally left blank) ìê ×ÒÜÛÐÛÒÜÛÒÌ ßËÜ×ÌÑÎÍ ÎÛÐÑÎÌ ÑÒ ÝÑÓÐÔ×ßÒÝÛ ßÒÜ ÑÒ ×ÒÌÛÎÒßÔ ÝÑÒÌÎÑÔ ÑÊÛÎ Ú×ÒßÒÝ×ßÔ ÎÛÐÑÎÌ×ÒÙ ÞßÍÛÜ ÑÒ ßÒ ßËÜ×Ì ÑÚ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÐÛÎÚÑÎÓÛÜ ×Ò ßÝÝÑÎÜßÒÝÛ É×ÌØ ÑÎÛÙÑÒ ßËÜ×Ì×ÒÙ ÍÌßÒÜßÎÜÍ Ì± ¬¸» Ø±²±®¿¾´» Ó¿§±®ô Ó»³¾»® ±º ¬¸» Ë®¾¿² Î»²»©¿´ ß¹»²½§ Þ±¿®¼ ¿²¼ ¬¸» ß¼³·²·¬®¿¬±® Ý·¬§ ±º Û«¹»²»ô Ñ®»¹±² Û«¹»²»ô Ñ®»¹±² ¿ ±º ¿²¼ º±® ¬¸» §»¿® »²¼»¼ Ö«²» íðô îððé ¿²¼ ¸¿ª» ·«»¼ ±«® ®»°±®¬ ¬¸»®»±² ¼¿¬»¼ Ü»½»³¾»® ïðô îððéò É» ½±²¼«½¬»¼ ±«® ¿«¼·¬ ·² ¿½½±®¼¿²½» ©·¬¸ ¿«¼·¬·²¹ ¬¿²¼¿®¼ ¹»²»®¿´´§ ¿½½»°¬»¼ ·² ¬¸» Ë²·¬»¼ Í¬¿¬» ±º ß³»®·½¿ ¿²¼ ¬¸» °®±ª··±² ±º ¬¸» Ó·²·³«³ Í¬¿²¼¿®¼ º±® ß«¼·¬ ±º Ñ®»¹±² Ó«²·½·°¿´ Ý±®°±®¿¬·±²ô °®»½®·¾»¼ ¾§ ¬¸» Í»½®»¬¿®§ ±º Í¬¿¬»ò Ì¸±» ¬¿²¼¿®¼ ®»¯«·®» ¬¸¿¬ ©» °´¿² ¿²¼ °»®º±®³ ¬¸» ó ¬¿¬»³»²¬ò ×²¬»®²¿´ Ý±²¬®±´ Ñª»® Ú·²¿²½·¿´ Î»°±®¬·²¹ ¬¿¬»³»²¬ô ¾«¬ ²±¬ º±® ¬¸» °«®°±» ±º »¨°®»·²¹ ¿² ±°·²·±² ±² ¬¸» »ºº»½¬·ª»²» ±º ¬¸» ß¹»²½§ ·²¬»®²¿´ ó °´±§»»ô ·² ¬¸» ²±®³¿´ ½±«®» ±º °»®º±®³·²¹ ¬¸»·® ¿·¹²»¼ º«²½¬·±²ô ¬± °®»ª»²¬ ±® ¼»¬»½¬ ³·¬¿¬»³»²¬ ·² ¿½½±®¼¿²½» ©·¬¸ ¹»²»®¿´´§ ¿½½»°¬»¼ ¿½½±«²¬·²¹ °®·²½·°´» «½¸ ¬¸¿¬ ¬¸»®» · ³±®» ¬¸¿² ¿ ®»³±¬» ´·µ»´·ó °®»ª»²¬»¼ ±® ¼»¬»½¬»¼ ¾§ ¬¸» ß¹»²½§ ·²¬»®²¿´ ½±²¬®±´ò ±® ¼»¬»½¬»¼ ¾§ ¬¸» ß¹»²½§ ·²¬»®²¿´ ½±²¬®±´ò Ý±³°´·¿²½» ³¿¬»®·¿´ ³·¬¿¬»³»²¬ô ©» °»®º±®³»¼ ¬»¬ ±º ·¬ ½±³°´·¿²½» ©·¬¸ ½»®¬¿·² °®±ª··±² ±º ´¿©ô ®»¹«´¿¬·±²ô Î«´» ÑßÎ ïêîóïðóððð ¬± ïêîóïðóííðô ¿ »¬ º±®¬¸ ¾»´±©ô ²±²½±³°´·¿²½» ©·¬¸ ©¸·½¸ ½±«´¼ ¸¿ª» ¿ ¼·®»½¬ þÌ¸» ¿½½±«²¬·²¹ ®»½±®¼ ¿²¼ ®»´¿¬»¼ ·²¬»®²¿´ ½±²¬®±´ ¬®«½¬«®»ò ìé þÌ¸» ¿³±«²¬ ¿²¼ ¿¼»¯«¿½§ ±º ½±´´¿¬»®¿´ °´»¼¹»¼ ¾§ ¼»°±·¬±®·» ¬± »½«®» ¬¸» ¼»°±·¬ ±º °«¾´·½ º«²¼ô þÌ¸» ®»¯«·®»³»²¬ ®»´¿¬·²¹ ¬± ¼»¾¬ò §»¿® îððé ¿²¼ îððèò þÌ¸» ¿°°®±°®·¿¬» ´¿©ô ®«´» ¿²¼ ®»¹«´¿¬·±² °»®¬¿·²·²¹ ¬± °®±¹®¿³ º«²¼»¼ ©¸±´´§ ±® °¿®¬·¿´´§ ¾§ ±¬¸»® ¹±ª»®²³»²¬¿´ ¿¹»²½·»ò þÌ¸» ¬¿¬«¬±®§ ®»¯«·®»³»²¬ °»®¬¿·²·²¹ ¬± ·²ª»¬³»²¬ ±º °«¾´·½ º«²¼ò þÌ¸» ®»¯«·®»³»²¬ °»®¬¿·²·²¹ ¬± ¿©¿®¼·²¹ ±º °«¾´·½ ½±²¬®¿½¬ ±º °«¾´·½ ·³°®±ª»³»²¬ò Ì¸» ®»«´¬ ±º ±«® ¬»¬ ·²¼·½¿¬» ¬¸¿¬ ©·¬¸ ®»°»½¬ ¬± ¬¸» ·¬»³ ¬»¬»¼ ¬¸» ß¹»²½§ ½±³°´·»¼ô ·² ¿´´ ³¿¬»®·¿´ Ì¸· ®»°±®¬ · ·²¬»²¼»¼ ±´»´§ º±® ¬¸» ·²º±®³¿¬·±² ±º ¬¸» Ø±²±®¿¾´» Ó¿§±®ô ³»³¾»® ±º ¬¸» Ë®¾¿² Î»²»©¿´ ß¹»²½§ Þ±¿®¼ô ¬¸» ß¼³·²·¬®¿¬±® ¿²¼ ³¿²¿¹»³»²¬ ±º ¬¸» Ë®¾¿² Î»²»©¿´ ß¹»²½§ ±º ¬¸» Ý·¬§ ±º Û«¹»²»ô Ñ®»¹±² ¿²¼ ¬¸» Í»½®»¬¿®§ ±º Í¬¿¬»ô ß«¼·¬ Ü·ª··±²ô ±º ¬¸» Í¬¿¬» ±º Ñ®»¹±² ¿²¼ · ²±¬ ·²¬»²¼»¼ ¬± ¾» ¿²¼ ×´»® ÝÐß Û«¹»²»ô Ñ®»¹±² Ü»½»³¾»® ïðô îððé ìè